OK, heres my story (BTW, all prices are in *****ty Canadian $):

Last July, I traded in my Saturn at the Scoob dealer for $11,000. A new 2.5RS (at the time) was $27,995. Taxes in Quebec are set at 7% Fed & 7.5% prov (15% total approx.). I purchased the car on a 48 month loan with a 5.8% rate. Somehow, I dunno why, I'm paying $600 a month! If I do my math correctly:

2.5RS: 27,995 + tax = 32,201

2.5RS - Saturn: 27,995-11,000+tax= 19,548

$600 per month X 48 months: 28,800 + Saturn (11,000) = 39,800

total - real total: $7599

I'm paying nearly 8 Grand in interest? That doesnt make sense!!!

If it makes a difference, I had $6000 left to pay off from the Saturn. Was that amount deducted from the trade in? I just confused myself as I typed this........

OK, forget all that, I just figure it out....stupid me......

The 6 g's that I owed was not included in the trade in price....so technically the trade in was only worth 5 g's. Damn, I was hoping to get some cash outta these guys! :)

Jon

Let's see if I can help you.

2.5 RS = 32,201 incl tax
- 11,000 trade in
= 21,201
+ 6,000 left on Saturn balance
= 27,201 financed
27,201 for 48 mos @ 5.8% = 636.33.

You don't say exactly what you pay per month, but this is the correct number. In my state, they subtract the amount of the trade-in from the taxable value of the new car (you already paid taxes on it), so it may be the same in Canada since you didn't say the exact amount.

Here's what I come up with:

$27,995 - $11,000 = $16995 (This is the amount that you owe tax on)

$16995 x 1.145 = $19,459.28.
Plus the $6k that you owe bring the total amount to be financed to: $25,459.28.

This amount financed over 48 months at 5.8% is $595.58/month.

Stacey

Yeah, that sounds about right....I'm paying EXACTLY $600.17 a month. So I guess it all works out. Oh well...

Yeah, the difference is probably that I used the $6k exactly . It's probably slightly over $6k and that is what is causing the discrepancy between mine and your numbers.

Stacey

Elusive is well versed in financial calc's... exactley correct you are !

In fact assuming all other pertinent info is correct at the time of trade-in you owed $6,196.20 on that Saturn !

Happy Driving

Brad

Gerez, this board is so useful!

Thanks homeys,

Jon

No problem!
That's what we are here for.

Stacey

http://sbsnyder.tripod.com/avs.gif Let's go Avs!!!!!!!!!!!

[ June 07, 2001: Message edited by: ELUSIVE ]

Look on the bright side...they're only Canadian dollars!! :p